Newly-appointed Gauteng MEC for Economic Development, Agriculture and Rural Development Parks Tau is set to face a baptism of fire after one of the agencies under him failed to submit its annual financial statement to the auditor-general for auditing.
Tau is due to appear before the Gauteng provincial legislature’s portfolio committee on economic development, agriculture and rural development following the tabling of various reports of the A-G.
In the report, the A-G singled out the Gauteng Enterprise Propeller (GEP) which is responsible to give support to small and medium businesses as one of the provincial entities which did to submit financial statements for audit.
Now, the committee has summoned Tau and his senior officials to appear before it on Friday next week – just a few days after Gauteng Premier David Makhura has delivered his state of the province address (SOPA) on Tuesday.
In the report, the A-G singled out the Gauteng Economic Development Department as having made great improvement in its financial audit outcome. The department joined the following agencies: Dinokeng; Constitutional Hill Development Company (ConHill); Gauteng Industrial Development Zone (Gidz); the Innovation Hub Management Company (TIH); Gauteng Gambling Board (GGB) and Gauteng Tourism Board (GTA) in obtaining unqualified audits with no findings.
The Cradle of Humankind World Heritage Site (COHWHS), Gauteng Liquor Board (GLB), Growth and Development Agency (GGDA) and Supplier Park Development Company trading as AIDC received unqualified audits with findings.
The A-G, however, said GGDA and AIDC had regressed in their annual financial statements while GEP has yet to submit its financial statements.
Commenting on the report, DA spokesperson on economic development Makashule Gana said his party is concerned that the Gauteng Enterprise Propeller (GEP) has failed to submit its annual report for the 2019/20 financial year.
“The auditor-general's office has picked up issues with the financial and performance reports of the GEP and has asked them to correct these reports before expressing an opinion.
“This is extremely worrying as the instability and non-performance of this entity is having a negative impact on small businesses in the province. The GEP is still sitting on R250 million that has been earmarked to assist small businesses in Gauteng that faced hardship during the Covid-19 pandemic.
“This amount was allocated during the adjustment budget in July. To this day, the GEP has failed to spend a cent towards assisting small businesses,” Gana said.
Political Bureau